According to All Team's 2025 Franchise Disclosure Document, the value of the right-of-use (ROU) asset acquired under operating lease in 2023 was $143,935. This figure represents All Team's right to use an underlying asset for the lease term. The company adopted ASU 2016-02, which dictates how leases are accounted for, on January 1, 2023.

Right-of-use assets and lease liabilities are recognized at the lease commencement date. The value is based on the present value of lease payments over the lease term. Since All Team's leases do not typically provide an implicit rate, the company uses its incremental borrowing rate based upon the information available at commencement date for both real estate and equipment leases.

This accounting treatment reflects the economic reality that All Team controls the use of the leased asset during the lease term. For a prospective franchisee, understanding how All Team accounts for leases is important for assessing the company's financial health and comparing it to other franchise opportunities. It's also important to note that leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term.